DAIRY NUTRITIONAL AND NUTRACEUTICAL INGREDIENTS MARKET ANALYSIS

Global dairy Nutritional and Nutraceutical Ingredients Market was valued at US$ 19.57 Bn in 2022, and is expected to exhibit a CAGR of 8.4%, in terms of revenue, over the forecast period (2023-2030) to reach US$ 37.21 Bn by 2030. Dairy nutritional and nutraceutical elements are dairy protein foods that are important for health. Whey protein and casein protein make up dairy protein. They are utilized in a variety of food and non-food applications, including the cosmetics sector. Dairy nutritional and nutraceutical elements may provide health advantages such as lowering the risk of cardiovascular disease, improving digestion, and boosting the immune system overall.

Global dairy Nutritional and Nutraceutical Ingredients Market- Impact of Coronavirus

Dairy Nutritional and Nutraceutical Ingredients Market- Impact of Coronavirus (Covid-19) Pandemic

Food being an essential commodity, the demand for food ingredients such as dairy ingredients is expected to rise during the pandemic and post pandemic conditions, worldwide. Having said that, Coronavirus (Covid-19) has majorly impacted the food & beverages industry and in turn has changed the dynamics of entire ecosystem including raw material suppliers supplying food ingredients. Lockdown in various nations such as India, China and Spain, among others and cease in the subsequent trade activities has paralyzed the supply chain. Lockdown in various countries is expected to impact supply chain system of dairy ingredients, which will hamper growth of dairy ingredients market for short period.

Figure 1. dairy Nutritional and Nutraceutical Ingredients Market, By Application, in 2022

To learn more about this report, request a free sample copy

Global dairy Nutritional and Nutraceutical Ingredients Market: Growth Drivers

Growing awareness regarding the potential health benefits of dairy protein

Growing awareness regarding the potential health benefits of dairy protein is primarily fueling the market growth of dairy nutritional and nutraceutical ingredients. Consumption of dairy proteins lowers the risk of cardiovascular disease, promote healthy bone growth, and enhance digestion. Moreover, increasing adoption of a healthy lifestyle by consumers is also expected to foster the market growth of dairy nutritional and nutraceutical ingredients. For instance, according to the National Library Of Medicine, milk and dairy products belong to foods with particularly high nutritional density. Additionally, all of the components in milk and dairy products are well absorbed. The exception is lactose, which is poorly absorbed by certain people; nevertheless, they can choose fermented dairy products, which include probiotic bacteria, a health-promoting bioactive component.

Huge demand for milk-based ingredients in skin and hair care cosmetics products

Milk-based components are in high demand in skin and hair care cosmetics due to their cleaning and moisturizing properties, which is fueling market expansion. Goat milk contains ingredients such as capric, caprylic, and capronic acids, as well as triglycerides, which provide pH balance and a variety of advantages for skin and hair. Goat milk contains a short-strand protein structure that allows for quick absorption via the skin. As a result, rising demand for milk-based components in skin and hair care cosmetic proteins is expected to boost market growth. For instance, on 17 Aug, 2022, Albolene cosmetic company introduced new line of hydrating facial cleansers which includes a hydrating cleansing balm, a hydrating daily cleanser and a hydrating micellar milk cleanser. Hence, it is expected that the demand for Global dairy Nutritional and Nutraceutical Ingredients Market will rise during forecasting period.

Global dairy Nutritional and Nutraceutical Ingredients Market: Restraints

The gap in supply and demand in global casein and caseinate coupled with the increasing price of raw materials

The gap in supply and demand in global casein and caseinate coupled with the increasing price of raw materials and manufacturing process are expected to hamper the market growth. Manufacturers are spending in research and development to investigate alternate raw material sources and enhance the production process. They are also working to improve the efficiency of their supply networks in order to fulfil rising demand. Furthermore, technological developments are likely to aid in expanding manufacturing capacity and lowering prices. While the market has problems, efforts are being taken to overcome them and assure continuous growth.

Figure 2. dairy Nutritional and Nutraceutical Ingredients Market, By Region, 2022

To learn more about this report, request a free sample copy

Market Trends

Ready-to-eat food and beverages

Ready-to-eat and drink products are gaining traction in the market due to the changing lifestyle of the consumer is expected to propel the market growth of dairy nutritional and nutraceutical ingredients. An increasing number of working women coupled with the increasing spending on healthy food products by consumers due to growing disposable income is further expected to bolster the market growth of dairy nutritional and nutraceutical ingredients.

Rise in popularity of organic colostrum

The rising growth of organic colostrum due to growing health wellness trends and growing awareness regarding the health benefits of organic food products is expected to fuel the market growth. Moreover, growing awareness regarding the benefits of milk protein is also expected to foster the market growth of the dairy nutritional and nutraceutical ingredients over the forecast timeframe.

Global dairy Nutritional and Nutraceutical Ingredients Market: Segmentation

On the basis of application in 2022, the functional food segment has accounted the largest market share of 43.5% in terms of value, followed by infant formula & clinical nutrition and dairy products segment respectively. This indicates that functional foods are in high demand and are likely to continue to grow. Functional foods are designed to provide health benefits beyond basic nutrition and often contain added ingredients like vitamins, minerals, or probiotics. Following the functional food segment, the infant formula & clinical nutrition segment these products are essential for the health and well-being of infants and individuals with specific nutritional needs. The demand for quality infant formula and clinical nutrition products is expected to remain steady in the future. Lastly, the dairy products such as milk, yogurt, and cheese are staple food items consumed by a large portion of the population. The dairy industry has witnessed various innovations in recent years, including the introduction of lactose-free and plant-based dairy alternatives, which have contributed to the growth in this segment. Overall, the functional food segment is leading the market in terms of value, indicating the growing consumer interest in health and wellness products. The infant formula & clinical nutrition segment and the dairy products segment are also significant contributors to the market, showcasing the continued demand for quality nutritional products in these categories.

Global dairy Nutritional and Nutraceutical Ingredients Market: Regional Analysis

North America region dominated the global  dairy Nutritional and Nutraceutical Ingredients Market in 2022, accounting for XX% share in terms of value, followed by Europe and Asia Pacific, respectively. The global market for nutraceutical ingredients is divided into five key regions: North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. North America is estimated to have the highest share of the nutraceutical ingredients market in 2023. This region's considerable market share may be ascribed to the existence of several nutraceutical product producers, the expanding vegan population, consumer awareness of nutraceutical goods, and significant expenditures in food processing equipment research and development. However, Asia Pacific is expected to grow at the fastest rate over the projection period. This regional market's expansion may be due to technical improvements in the food sector, the extensive availability of raw materials with large production capacities, increased demand for dietary supplements, and expanding knowledge about the health advantages of nutritional products, increasing disposable incomes, rapid urbanization, and rising health wellness trends in nutraceutical sector.

Global dairy Nutritional and Nutraceutical Ingredients Market: Recent Developments

• On 7 September 2022, Fonterra Co-operative Group Ltd Pure green a dairy co-operative company, launched new wellbeing nutrition solutions brand. This new brand new brand helps consumers in evolving wellbeing nutrition needs.

• On 1 September 2022, DSM a multinational corporation active in the fields of health, nutrition and materials acquired Prodap, a leading animal nutrition and technology company in Brazil. This will help Koninklijke DSM N.V to expand the business globally.
• On 19 Oct 2022, Royal DSM Multinational Corporation active in the fields of health, nutrition and materials completed acquisition of First Choice Ingredients. First Choice Ingredients, a supplier of dairy-based savory flavoring. Through this DSM will offer First Choice Ingredients products outside U.S through DSM global customer base.
• On 4 November 2021, Fonterra and VitaKey partner to enhance dairy's contribution to health and wellness. The first step of this collaboration aims to stabilize probiotics and deliver them to the digestive tract.

Global dairy Nutritional and Nutraceutical Ingredients Market: Key Companies

Key players active in the Global dairy Nutritional and Nutraceutical Ingredients Market are Fonterra Co-operative Group Ltd., Koninklijke DSM N.V., Arla Foods amba, E.I. DuPont De Nemours and Co.

*Definition: Dairy nutritional and nutraceutical ingredients are milk-based ingredients that are rich in essential vitamins such as protein, calcium, and are widely used in the manufacturing of dairy products. This includes yogurt and cheese, infant formulae toppings, ice cream, dietary formulations, energy bars, and cereal, confectionery, low-fat spreads, geriatric nutritional products, and sports foods & beverages.